It's been a mediocre week for Pactiv Evergreen Inc. (NASDAQ:PTVE) shareholders, with the stock dropping 12% to US$13.57 in the week since its latest first-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$1.3b, statutory earnings beat expectations by a notable 37%, coming in at US$0.04 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pactiv Evergreen after the latest results.

View our latest analysis for Pactiv Evergreen

Following last week's earnings report, Pactiv Evergreen's seven analysts are forecasting 2024 revenues to be US$5.27b, approximately in line with the last 12 months. Earnings are expected to improve, with Pactiv Evergreen forecast to report a statutory profit of US$1.10 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.42b and earnings per share (EPS) of US$1.09 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of US$16.57, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Pactiv Evergreen's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Pactiv Evergreen, with the most bullish analyst valuing it at US$19.00 and the most bearish at US$14.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.5% annualised decline to the end of 2024. That is a notable change from historical growth of 1.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.9% per year. It's pretty clear that Pactiv Evergreen's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Pactiv Evergreen analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Pactiv Evergreen that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.